American Motorcycle Dealer AMD 242 September 2019 | Page 19
In the latest spin of the wheel in the
motorcycle industry's burgeoning light
and middleweight displacement
direction of travel, former Harley-
Davidson subsidiary MV Agusta has
followed Harley down the path to
manufacture small displacement
motorcycles for the burgeoning
lightweight and middleweight markets
in China by inking a deal with Chinese
industrial giant Loncin Motor Co.
Now under Russian ownership, the
iconic Italian race and sportbike brand
will see Loncin manufacturing MV
Agusta branded 350-500 cc models in
what is described as a "long-term
strategic partnership agreement that
has, as a base, the development of an
all new family of MV Agusta products.
"The vehicles will be completely
designed by MV Agusta to occupy the
premium segment of this high growth
market - Loncin is the market leading
motorcycle manufacturer in Asia. Like
all MV Agusta products, this new 4-
model family will embody the unique
MV Agusta DNA - its unique sound and
vehicle dynamics will spark a strong
connection with all the new riders."
In a move that is clearly aimed at
replicating their former owner's
playbook, a strategy successfully
pursued by several manufacturers in
recent decades, not least by Ducati,
"this strategic alliance will enable MV
Agusta to enlarge its current product
portfolio with the objective of
increasing our riders globally and
expanding access into Asia. The
collaboration marks a significant
progress towards a major pillar in the
MV Agusta accelerated growth plan.
MV Agusta CEO Timur Sardarov with Loncin President Yong Gao
The company objective is to expand
access to the MV Agusta brand and
driving incremental sales, both of the
new, smaller displacement motorcycles
and of the current Italian 675, 800 and
1000 cc MV Agusta product range."
The new models are slated to be in
Chinese dealerships by the end of
2021.
Interestingly, MV Agusta and Loncin
have confirmed that their partnership
"will not be limited to the development
of the new family of products in the
350-500 cc range. It also includes MV
Agusta assisting Loncin in entering the
premium segment market with MV's
800 cc platform.
Following its full take-over by Russian
multibillionaire oil and gas magnate
Rashid Sardarov in 2018, Giovanni
Castiglioni, the last connection to the
Castiglioni dynasty, was ousted as
Chairman and CEO and retained as
company President, with corporate and
strategic management now in the
hands of son and CEO Timur Sardarov.
The President of Loncin, Mr. Yong Gao,
announced: "The conclusion of the
strategic agreement is conducive to
Loncin's and MV Agusta's joint
response to the changes in global
market demand and to the coordinated
development of both sides. Loncin will
use advanced manufacturing resources
and Chinese market knowledge to help
MV Agusta expand its product line and
enhance product competitiveness. MV
Agusta's technology and advanced
design experience of high-
performance motorcycles will support
Loncin's VOGE brand in becoming the
market leader of premium motorcycles
in China."
Timur Sardarov is quoted as saying:
"This strategic alliance is an important
step to consolidate our vision for the
future of MV Agusta. Our target is to
reaffirm our leadership in the
production of upper-premium
motorcycles, while also enlarging our
customer base by offering a broader
range of products without
compromising our distinctive design
and performance."
Loncin produces over one million
vehicles a year - mostly PTWs (Powered
Two-Wheelers) and related units and
has annual production capacity for
2,500,000 motorcycles, 3,000,000
motorcycle engines and 150,000 ATVs.
NEWS
BRIEFS
As a patron of the event, FEMA (the
Federation of European
Motorcyclists' Associations) will
speak at the First International
Conference on Road Safety for
Motorcyclists on Friday 20 September
2019 at the AISICO Test House & Lab
in Pereto, Italy. Staged in
collaboration with the European
Union Road Federation (ERF), the
ongoing work to make guardrails
more motorcyclist-friendly is a priority
theme. FEMA says the need of an
international debate about this
subject arises from the release in
April of a new Italian decree about
the road safety system for
motorcyclists. The decree follows the
EU regulation CEN/TS 17342:2019
and describes the technical
specifications to reduce the impact
severity of motorcyclists' collisions
with safety barriers.
New motorcycle registrations in
Germany were +6.24% January
to July at 87,512 units sold - the
best first seven months there
since before 2008. The top
selling model YTD remains the
BMW R 1250 GS (7,739 units);
with seven models among the
top 30 best sellers, it is no
surprise that BMW has
stretched its German market
dominance still further, having
sold 21,198 units in total YTD
for a 17.04 percent market
share. Honda was second, KTM
third, Yamaha fourth and
Kawasaki fifth.
After Harley, MV Agusta Announces a China
Light and Middleweight Displacement Deal